See More on Facebook

Diplomacy, Economics

US urged to comply with WTO ruling

The US, under Trump, has shunned several international organizations.


Written by

Updated: July 19, 2019

The United States has challenged the authority of the World Trade Organization by ignoring a WTO ruling, and such a move may escalate trade tension with China, experts said on Wednesday.

The WTO announced on Tuesday that the revised countervailing measures imposed by the US on imports of certain products from China were inconsistent with WTO laws.

However, the US failed to comply with the WTO ruling and accused China of “using State-owned enterprises to subsidize its economy”.

The WTO mechanism is what members use to settle trade disputes, and countries in most cases abide by the rulings made by the organization, said Xue Rongjiu, deputy director of the China Society for WTO Studies.

“If member economies don’t follow this procedure, the rule-based global multilateral system will be damaged and threatened by protectionism,” Xue said, adding that under such circumstances, some members may be forced to also use trade as a geopolitical weapon to ensure their interests.

Upholding the findings of a WTO dispute panel made public in March 2018, a WTO appellate body ruled that the US acted inconsistently with its provisions of subsidies and countervailing measures agreement.

The Ministry of Commerce urged the US to take immediate and concrete action to “correct the wrong practices” in the anti-subsidy investigation against China and to create a fair and stable international trading environment for companies from both countries.

“Although both the panel of experts and the appellate body in this case have ruled that the US countervailing measures violate WTO rules and asked the US to correct its action, the US didn’t comply with the WTO ruling and continued to adopt trade remedy measures against Chinese products in recent years,” the ministry said in a statement on Tuesday.

The ministry said the ruling of the WTO appeals body proves that the US has seriously compromised the fairness of the international trading environment by violating WTO rules and repeatedly abusing the power of trade remedy measures.

Among the findings, the appellate body said the US Department of Commerce had failed to explain, in several of the countervailing proceedings, “how government intervention in the market resulted in domestic prices for the inputs at issue deviating from a market-determined price”, and emphasized that “an investigator’s determination of how prices in markets are in fact distorted as a result of government intervention must be based on positive evidence”.

China has always advocated resolving economic and trade differences through dialogue and consultation and has always been sincere, said Foreign Ministry spokesman Geng Shuang at a regular press briefing on Wednesday.

The US thinks there is a long way to go before reaching a trade agreement with China, but in China there is a saying that a journey of a thousand miles begins with a single step, said Geng, adding that the US needs to be determined to achieve a win-win agreement.

New tariffs will only set up new barriers to economic and trade consultations between China and the US, he said in response to the US threat of imposing additional tariffs on Chinese exports.

China has always respected multilateral trade rules and opposes the abuse of trade remedies. The country has not only defended its legitimate rights and interests, but also safeguarded the authority of the multilateral trading system and the seriousness of WTO rules, said Wei Jianguo, vice-chairman of the China Center for International Economic Exchanges.

The appellate body’s ruling will place additional pressure on the next round of China-US trade talks and bring uncertainty to the fragile world economy, Wei said.

China appealed to the WTO in 2012 to contest US anti-subsidy tariffs on Chinese exports including several metal products, steel tire rims, solar panels, wind power equipment and aluminum goods.

China challenged various aspects of certain countervailing duty investigations and the preliminary and final determinations that led to the imposition of countervailing duties.



Enjoyed this story? Share it.


China Daily
About the Author: China Daily covers domestic and world news through nine print editions and digital media worldwide.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

Diplomacy, Economics

S. Korea grapples with gender discrimination in workplace

Despite it’s high economic developments, critics say that South Korea has to improve workplace equality. South Korea has seen its female employment index improve steadily over the past 10 years, but continues to struggle with gender equality when it comes to parental leave and consequent career breaks, data showed Monday. Unlike in most developed economies which tend to see the employment rate of women in their 40s peak and start declining in the 50s, Korea has seen women in their late 30s and early 40s — the prime age for childbirth and childcare — being pushed out of the labor market. All seven of the so-called 30-50 club count


By The Korea Herald
October 22, 2019

Diplomacy, Economics

New Delhi slams Islamabad for unilaterally stopping postal services

Prasad further said that Pakistan ‘without any prior notice or information has stopped sending postal department’s letter to India’. Union Minister Ravi Shankar Prasad on Monday said that Pakistan had stopped postal service from India for the last two months and slammed the move saying that it was in contravention of international norms. “For the last two months, Pakistan has stopped postal service from India. It’s directly in contravention of the World Postal Union’s norms,” Prasad told reporters. “But Pakistan is Pakistan,” Prasad, who is the Minister for Communications and IT, added. He said that Pakistan “without any prior notice or information has stopped sending postal department’s letter to India”. Pakistan has upped the ante against India ever since Parliament withdrew special category status to Jammu and Kashmir by revoking Article 370 of its Constitution.


By Dawn
October 22, 2019

Diplomacy, Economics

Beijing sounds warning against foreign interference at annual security forum

China’s Defence Minister Wei Fenghe delivers a speech at the Xiangshan Forum in Beijing, China. China’s Defence Minister Wei Fenghe sounded a thinly veiled warning against the United States at a security conference in Beijing, saying that interfering in the internal affairs of others and inciting colour revolutions have led to wars and turbulence in various regions in the world. Such “reckless interference” would not foster harmonious relations, said General Wei on Monday (Oct 21) in his speech to open the conference. Beijing has blamed foreign countries, including the US, for inciting the unrest that has convulsed Hong Kong for five months. It has also


By The Straits Times
October 22, 2019

Diplomacy, Economics

Border clash with India leaves 7 dead in Pakistan

Kashmir is becoming an untenable boiling point. At least six civilians and a Pakistani soldier were killed as Indian troops resorted to “indiscriminate and ruthless” shelling from across the Line of Control (LoC) in Azad Jammu and Kashmir (AJK), officials said on Sunday. Officials said that nine other civilians were injured, adding that this was the highest death toll in 2019 in a single day of Indian shelling from across the dividing line. Inter-Services Public Relations (ISPR) notified through a tweet that one soldier had been martyred in the exchange of fire while two others were injured. ISPR added that in response to unprovoked ceasefire violations by India in Jura, Shahkot and Nauseri sectors, nine Indian soldiers were killed while several ot


By Dawn
October 21, 2019

Diplomacy, Economics

Chinese TV drama to air on Kenya’s national television

China has expanded aggressively into Africa. Kenya Broadcasting Corporation on Saturday signed a partnership agreement with China’s National Radio and Television Administration that will see the national broadcaster air a popular Chinese TV drama, Feather Flies to the Sky. The drama is a 55-episode series that will be aired by national broadcaster Channel one TV until June next year. Speaking during the launch event in Nairobi, Kenya, Dr Naim Bilal, the managing director of Kenya Broadcasting Corporation, said the TV series has been dubbed in Standard Kiswahili, one of the official languages in Kenya, to make it appealing to many people. “We have reviewed the series, looked at its quality and content as well as the quality of the language, and we are fully satisfied that it’s a drama that is going to entertain Kenyans,” Bilal said. He sa


By China Daily
October 21, 2019

Diplomacy, Economics

‘History will take note of those who ridiculed removal of Article 370’: PM Modi in Maharashtra

PM Modi also expressed confidence that the BJP will break all victory records in the October 21 Maharashtra Assembly elections. Prime Minister on Thursday once again lashed out at the opposition saying that history will take note of those who mocked the abrogation of Article 370, that gave special status to Jammu and Kashmir. “Whenever Article 370 will be discussed in history, — the decision that was taken in the interest of the country — the people who opposed and ridiculed will be remembered,” PM Modi said while addressing a poll rally in Maharashtra’s Parli. He said the next week’s state Assembly elections were a battle between BJP’s “karyashakti” (power of development) and opposition’s “swarth shakti” (selfishness). Further targeting the Congress and NCP leaders, he wondered if “frustrated and dejected” people could do anything good for people. “A Congress


By The Statesman
October 18, 2019